Answer:
Explanation:
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Answer: Po = Do(1+g)/Ke-g
Po = $3.10(1-0.109)/0.13 - (-0.109)
Po = $3.10(0.891)/0.13+0.109
Po = $3.10(0.891)/0.239
Po = $11.56
Explanation: The current market price of the stock equals the current dividend paid multiplied by 1+g divided by the excess of cost of equity over growth rate. The growth rate is negative in this case, thus, the growth rate would be deducted from 1. Moreso, the growth rate will be added to cost of equity since it is negative. Thus, the amount that the investor will be willing to pay is $11.56.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
C. (equals 50 and has cash and coins)
Explanation:
1-10= 10
5-5 =25
35+12=47
8 quarters= 2 $49
.60+.30+.1= $1
Answer:
D. Both a and b.
Explanation:
Laurie has land of $60,000 as mortgage. Her basis in the land is $20,000 which means she can recognize the income of $40,000 as a gain on transfer. The fair market value of land is $50,000, the amount of discharge of indebtness is $60,000 which is the amount of mortgage.